Govt Raises Rs. 1.096 Trillion Through T-Bill Auction

The government raised Rs. 1.096 trillion, through the auction of treasury bills. Another Rs. 70 billion was also raised through the auction of Pakistan Investment Bonds (PIBs). However, the cut-off yields on all the tenors of the T-bills remain unchanged. For three-month tenure, at 7.32 percent, the government raised Rs. 388.7 billion, but the total bids received for this tenure amounted to Rs. 749 billion. The 6-month T-bills fetched the highest amount of Rs. 707.6 billion at 7.6 percent. The bids were also the highest for this tenure at Rs. 1.113 trillion, which showed improving investment trends. This also shows that investors are expecting the interest rates to change during the next six months, albeit by a small degree. The 12-month paper brought the lowest contribution to the amount raised by the government. Total bids received for this tenure were Rs. 1.905 trillion, while the amount raised was Rs. 25 million. Regarding the PIBs auction, the government raised Rs. 55 billion from the quarterly auction. Out of this, Rs. 25 billion came from two-year bonds, and Rs. 30 billion came from three-year bonds. The government also raised Rs. 15 billion for five-year PIBs in the semi-annual auction. Put together, this auction brought Rs. 70 billion for the government from PIBs.